Harman v. Commissioner
United States Tax Court
Held: On these facts the initiation fee paid to become a member of the New York Stock Exchange is an amount paid in connection with the acquisition of a capital asset. As such it represents a capital expenditure to be included as part of the cost basis of the membership.
1Opinion of the Court
OPINION
Irwin, Judge:
Respondent determined a deficiency in petitioners’ joint Federal income tax for the calendar year 1973 in the amount of $3,375.
A concession having been made by petitioners, the only issue for our decision is whether the initiation fee which was, in effect, paid to become a beneficial member of the New York Stock Exchange represents a capital expenditure or an ordinary and necessary business expense.
This case was fully stipulated pursuant to Rule 122, Tax Court Rules of Practice and Procedure. The stipulation of facts, along with attached exhibits, are incorporated herein…
2Cases cited8 opinions
- United States v. Victor H. And Elsie Akin, Fred C. And Alice M. Kluver, E.F. And Gladys MunroeCourt of Appeals for the Tenth Circuit · 1957
- Ryman v. CommissionerUnited States Tax Court · 1969
- Heigerick v. CommissionerUnited States Tax Court · 1966
- Mercantile Nat'l Bank v. CommissionerUnited States Tax Court · 1958
- Commissioner of Internal Revenue v. Mercantile National Bank at DallasCourt of Appeals for the Fifth Circuit · 1960
3 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Becker Warburg Paribas Group Inc. v. United StatesDistrict Court, N.D. Illinois · 1981
- Harman v. CommissionerUnited States Tax Court · 1979